Tonies SE's Strong Performance Backs BUY Recommendation

In its latest report, NuWays AG maintains a "BUY" recommendation for Tonies SE, setting a target price at €18.5 for the next twelve months. The report highlights Tonies' strong Q2 performance, with a group revenue surge of €117m, 49% higher year-on-year. The US market remains a crucial growth driver, showing an impressive 85% increase in Q2, despite some margin pressures.

Tonies SE experienced a dip in margins in H1 due to U.S. tariffs and a shift in product mix. However, the company anticipates positive free cash flow by FY end, with sales expected to ramp up in H2. DACH region sales grew by 23%, demonstrating resilience even in near-saturated markets. Rest of World continues its growth, with 31% increase led by the UK, France, and Australia.

The launch of new products like Toniebox Lite and popular franchises such as Bluey and Pokémon are expected to propel growth further in Q4. Management remains optimistic, projecting over 20% year-on-year group growth.